Royal Children's Hospital axes 50 jobs over budget cuts

THE Royal Children's Hospital has shed 50 jobs to slash spending as it scrambles to make up for Federal Government budget cuts.

A dozen staff were told yesterday they would be made redundant in an effort to save $3.6 million by July.

The RCH has also been forced to halt plans to fill 25 vacancies it already has in its ranks, while attempts will be made to "redeploy" or shed about 13 others whose positions no longer exist.

RCH chief executive Christine Kilpatrick said the drastic action was an attempt to prevent cutting operations and other treatments for sick children.

But the savings outlined only account for $2.5 million, meaning the hospital must still find another $1.1 million in savings.

Ms Kilpatrick said no bedside or clinical staff had been included in the job losses to protect patients, though she conceded cuts to support staff, administration and finance would hit the hospital hard through increased workloads.

"It is a very difficult day, a very challenging day," Ms Kilpatrick said.

"There is an impact on other staff, colleagues, because- they were doing very useful work and they won't be with us any more.

"But under the circumstance our goal is to continue with clinical services. That's what our moral and ethical obligation is to the children of Victoria."

As well as reigning in spending and increasing revenue streams, RCH management has launched a campaign among staff to identify any further savings to recoup the $1.1 million it needs to claw back.

A handful of staff have volunteered to cut their hours.

"I am very hopeful we will be able to find this additional funding without impacting on clinical services," Ms Kilpatrick said.